Frequently Asked Questions
What is the difference between fixed and variable expenses?
Fixed expenses are costs that stay roughly the same each month, such as rent or a mortgage, car payments, insurance premiums and phone plans. Variable expenses change from month to month, such as groceries, gas, dining out and entertainment. Fixed costs feel locked in, but many of them can be lowered by shopping around, negotiating or refinancing.
Is refinancing a car loan worth it?
Refinancing can be worthwhile if you qualify for a meaningfully lower interest rate than your current loan, often because your credit score has improved or market rates have fallen. Check for any fees and be careful about stretching the loan over a longer term, since a lower monthly payment over more months can still cost more in total interest. Comparing the total cost of the old and new loans is the clearest way to decide.
Can you lower your federal student loan payments?
Yes, federal borrowers can often lower monthly payments through income-driven repayment. Under the 2025 federal budget law, a new Repayment Assistance Plan (RAP) became available on July 1, 2026, with payments based on income and number of dependents and a $10 minimum monthly payment. The SAVE plan has ended, the older PAYE and ICR plans are being phased out by July 1, 2028, and borrowers with new loans made on or after July 1, 2026 choose between RAP and a new tiered standard plan. Check your options with your loan servicer or at StudentAid.gov before switching.
Does refinancing a mortgage always save money?
Not always. A lower rate can reduce your monthly payment, but refinancing comes with closing costs, and restarting or extending your loan term can increase the total interest you pay over the life of the loan. A common check is to estimate how many months of savings it will take to cover the closing costs and compare that with how long you expect to stay in the home. A mortgage professional or financial advisor can help you run those numbers.
About the author
Contributing Writer, Wealthtender
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine.
Karen provides copy editing and proofreading services, as well as content creation services, at her website KarenBanes.com.